1992-06-18 Resolution 56 - Laserfiche WebLink

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A summary of the funds and accounts established in the Trust Agreement is provided in the following section of this Official Statement. Excerpts from the Trustee Agreement are found in Appendix C of this Official Statement. Persons interested in obtaining the full Trust Agreement may request a copy from Baker & Daniels, Attn: Richard L. Hill, Esq., First Bank Building, 205 West Jefferson, South Bend, Indiana, 46601, (219) 234-4149. Funds and Accounts Per the Trust Agreement The Trust Agreement establishes the following funds and accounts. (This information is presented in summary form.. For greater detail, please refer to Appendix C). South Bend Redevel~ment Authoriy Palais Rovale 5inkine Fund. The Trustee shall deposit into the Sinking Fund from each rental payment received an amount equal to the lessor of i) all of such rental payment received; or ii) an amount which when added to the amount in the Sinking Fund equals the sum of the unpaid interest on the Bonds due on, before, or within 45 days after the rental payment becomes due,. and the unpaid principal on the Bonds due within 8 months from the date the rental payment becomes due. Any portion of a rental payment remaining after such deposit, shall be deposited in the Operation and Reserve Fund. The Trustee shall, from time to time, withdraw sufficient money from the Sinking Fund to pay principal and interest on the Bonds when due. South Bend Redevelopment Authon_'ty Palais Royale Expense Fund. This fund is established to pay the costs of issuance of the Bonds. After November 1, 1992, the Trustee may transfer any moneys on deposit in this fund to the Sinking Fund. South Bend Redevelovment Authority Palais Rovale Operation and Reserve Fund. This fund is established ' to pay necessary incidental expenses of the Authonty (e.g. audits, appraisals, and reports); to pay principal, interest, and redemption. premiums upon redemption of the Bonds, if any; and to contribute money to the • Sinking Fund if it should ever be deficient. The Trustee shall invest all funds, or so much as is practicable in Qualified Securities as permitted by law. Whenever the amounts contained in the Funds are sufficient to redeem all outstanding Bonds, the Trustee shall apply the amounts in the Funds to the redemption of the Bonds. Risk Factors to be Considered by Investors Prospective investors in the Bonds should be aware of the following risk factors: 1. The Bonds are payable solely from, and secured by, lease rental payments from the Commission to the Authority and other Pledged Funds as defined in the Trust Agreement. The Authority has no taxing power. 2. In the event the Leased Property should ever be totally or substantially. destroyed, the lease rental will be abated during the period in which the Leased Property is unfit for its intended use. However, rental value insurance will be available to make bond payments during the time the lease rental is .abated, for a period of up to two years. If either (i) the cost of reconstruction of the Leased Property would -exceed the amount of insurance proceeds or (ii) such reconstruction cannot be completed within the period of time covered by rental value insurance, the: insurance proceeds will be applied to the redemption of all outstanding Bonds and the full discharge of all obligattons pertaining thereto. 3. In the event of delayed billing, collection or distribution of property taxes by the county auditor, sufficient funds may not be available to the Redevelopment Commisston m time to make lease rental payments when due. • 6